The Use of Economics in International Trade and Investment Disputes: A Coherent Way Forward

19 Pages Posted: 2 May 2016

See all articles by Marion Jansen

Marion Jansen

International Trade Centre

Joost Pauwelyn

Graduate Institute of International and Development Studies (IHEID); Georgetown University Law Centre

Theresa H. Carpenter

Graduate Institute of International and Development Studies (IHEID) - Centre for Trade and Economic Integration (CTEI)

Date Written: April 15, 2016

Abstract

In this paper we assess the quality and coherence of the use of economics in dispute settlement in two fields of international economic law: international trade and international investment law. We argue that four economic concepts are frequently used and/or of critical importance for both international trade and investment law. Those concepts are the concepts of “likeness”/”like circumstances”, causality, “necessity” and damage calculation. We highlight differences in the way in which economics has been applied to assess these concepts and argue that coherence in the use of economics can be increased by reassessing the way in which economics is brought into submissions by parties and the processes that are relevant for adjudicators when interpreting economic evidence. We argue that a common set of guidelines for submitting quantitative evidence in WTO or investor-state dispute settlement proceedings can contribute greatly to setting quality standards and to creating trust as to the reliability and acceptability of economic evidence submitted to adjudicators. In an appendix to this paper we make suggestions as to what such guidelines could look like.

Keywords: international economic law, international trade, investor state disputes

JEL Classification: K33, K41, F10, F21

Suggested Citation

Jansen, Marion and Pauwelyn, Joost and Carpenter, Theresa H., The Use of Economics in International Trade and Investment Disputes: A Coherent Way Forward (April 15, 2016). Available at SSRN: https://ssrn.com/abstract=2773836 or http://dx.doi.org/10.2139/ssrn.2773836

Marion Jansen (Contact Author)

International Trade Centre ( email )

54-56 Rue de Montbrillant
Geneva
Switzerland

Joost Pauwelyn

Graduate Institute of International and Development Studies (IHEID) ( email )

PO Box 136
Geneva, Geneva CH-1211
Switzerland

HOME PAGE: http://graduateinstitute.ch

Georgetown University Law Centre ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States

Theresa H. Carpenter

Graduate Institute of International and Development Studies (IHEID) - Centre for Trade and Economic Integration (CTEI) ( email )

Richard Wagner 1, 5th floor, CH 1201
Geneva, 1201
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
148
Abstract Views
822
rank
222,279
PlumX Metrics